Banks Need To Do Their Bit
Anuj Khetan, Director, Vijay Khetan Group
“RBI has played its part but banks need to do theirs by transmitting the rate cuts to the consumers. The extension of the moratorium on loans by further 3 months would bring in some relief to the borrowers in this difficult situation. These measures will have a cascading effect on the economy by offsetting some pains of the salary cuts faced by employees as the biggest expense are the EMIs for everyone. RBI and the Finance Minister will need to work in tandem to bring in long-term economic measures to push businesses atleast in the first gear from neutral rather than giving piece meal solutions which are like temporary band-aids which will hurt even more when it will be ripped; pushing the economy in reverse.
In the current scenario, liquidity is accessible in abundance to the companies that share an existing relationship with the financial institutions. Banks are turning away new proposals from those companies who were debt free and have not leveraged any services from them in the pre-Covid era but would like to avail some credit now for the expansion of their business.”